Irvine-based CombiMatrix Corp. completed its earlier-announced merger with InVitae Corp. and is now a wholly-owned subsidiary of the San Francisco-based genetic information company. The all-stock transaction is approximately $33 million.
It’s part of InVitae’s plan to expand family health diagnostic testing. Along with CombiMatrix, which specializes in preimplantation genetic screening, prenatal diagnosis, miscarriage analysis and pediatric development disorders, InVitae bought Good Start Genetics in Cambridge, Mass., in July. The diagnostics company focuses on preimplantation and carrier screening for inherited disorders.
InVitae currently trades at $8 for a $410 million market cap. It generated $25 million in 2016 revenue.
The company bought two other companies this year, CancerGene Connect in Dallas, Texas, which collects, analyzes and manages patient family history to access the hereditary risk of a predisposition to disease, and AltaVoice in San Mateo, which optimizes searches for patient health data.
“I think we are combining like-thinking companies wanting to optimize high-touch experience for patients,” said Mark McDonough, former CombiMatrix president and chief executive. He and Scott Burrell, former chief financial officer, will stay on as independent consultants to facilitate the transition, which will take six to eight months.
McDonough said he’s proud CombiMatrix is joining a well-capitalized company that will allow it to thrive. Its Irvine facility has 54 employees and will continue operations.
“I won’t be the head man … but I am genuinely excited about the company, and minus myself and Scott, the opportunity for the other 54 people we care about.”
Shares of CombiMatrix climbed from $5 to nearly $8 following the announcement and were at $6.25 per share after the deal closed.
It reported 2016 revenue of $12.9 million, up 28% from $10.1 million in 2015.
Acquisition
Mission Viejo-based Mynd Analytics Inc., a predictive analytics company, bought Arcadian Telepsychiatry Services LLC in Fort Washington, Pa., to expand its artificial intelligence and data analytics platform in telemedicine.
Mynd develops the PEER, Psychiatric EEG (electroencephalogram) Evaluation Registry. Its in-house predictive analytics allow medical professionals to exchange treatment outcome data obtained through EEGs. The EEG is a test that measures brain waves, providing evidence of how the brain functions over time. It’s used to evaluate brain disorders and help doctors choose medications for mental illnesses.
Arcadian provides psychiatrist services, such as on-demand emergency consultation to emergency departments and crisis centers; initial psychiatric evaluations; and medication management through video conferencing. Its provider network is comprised of licensed and credentialed master-level therapists and psychiatrists. It provides services 24 hours a day, seven days a week.
Mynd will acquire all of the issued and outstanding membership interests of Arcadian from Arcadian Chief Executive Robert Plotkin.
It will employ him in his current role for an annual salary of $215,000, according to Securities and Exchange Commission filings.
Mynd will also guarantee approximately $800,000 in loan obligation from Arcadian, the majority of which are due in 2021, as well as purchase pre-existing warrants in Arcadian for $174,000 and fund other transaction-related expenses.
“The acquisition is highly strategic,” said Mynd Chief Executive George Carpenter. “It provides us a foothold in the servicing of the rapidly growing telemedicine market and an opportunity to leverage our technology platform.”
Carpenter added that the consolidation is early in its progress but the two companies also share similar customer bases, including government and nonprofit agencies, hospital networks and private insurers.
Mynd currently trades at $3.75 per share for a $17 million market cap.
Bits & Pieces
Huntington Beach-based CiceroDx reported positive findings from a cohort study in the latest issue of international industry journal Fertility and Sterility. The study supports in vitro fertilization facilities to use CicertoDx’ diagnostic test, ReceptivaDx, for patients ahead of the first fertilization cycle or after the first failure to see if patients carry a biomarker associated with endometriosis, a leading cause of unexplained infertility. The ReceptivaDx test costs $690. … Newport Beach-based Hoag Memorial Hospital Presbyterian was named for the third consecutive year to IBM Watson Health’s 50 Top Cardiovascular Hospitals in the U.S. The annual study measures several performance data, including inpatient mortality, risk-adjusted complications, 30-day mortality and readmission rates. … MemorialCare Miller Children’s & Women’s Hospital Long Beach named Dr. Graham Tse associate chief medical officer. Tse has worked in the pediatric intensive care unit for more than 17 years. The hospital is part of Fullerton-based MemorialCare Health, which has five hospitals in its network.
